DBS BANK COMPLETES ACQUISITION OF 60% SHAREHOLDING INTEREST IN BANK OF SOUTHEAST ASIA, INC.

On 14 Jan 1998, The Development Bank of Singapore Ltd ("DBS Bank") and the shareholders of the Bank of Southeast Asia, Inc. ("BSA") signed an Acquisition Agreement, a Subscription Agreement and other documents to enable DBS Bank to acquire a majority shareholding interest in BSA.

DBS Bank has today completed its acquisition of 60% shareholding interest in the BSA, and BSA has been renamed DBS Bank Philippines, Inc. ("DBS Philippines"). As DBS Bank’s subsidiary, DBS Philippines is DBS Bank’s principal operating vehicle in the Philippines.

DBS Bank achieved its majority interest in DBS Philippines via the purchase of 4,275,000 existing shares and the subscription of 11,963,480 new shares. The total consideration payable, estimated to be between PhP1.2 billion and PhP1.5 billion, shall be based on the adjusted net tangible asset value of BSA’s shares as at 31 Aug 98, which will be determined following an audit on BSA’s accounts.

As part of the acquisition process, the operations of the Manila Branch of DBS Bank have been merged with DBS Philippines following a transfer of its business undertaking to DBS Philippines. DBS Philippines also acquired 27.8% of the issued share capital of BSA Savings Bank making it a wholly owned subsidiary. The consideration is an issue of new shares in DBS Philippines. BSA Savings Bank has been renamed DBS Savings Bank Philippines, Inc.

DBS Philippines is a full-license commercial bank in the Philippines with a network of 19 branches. With the completion of the acquisition, DBS Philippines has total assets of approximately PhP16 billion, total loans and investments of approximately PhP11.9 billion (of which PhP4.9 billion were from DBS Bank Manila Branch) and total shareholders’ funds of approximately PhP2.4 billion. Apart from DBS Bank as its majority shareholder, the ASB Group of Companies led by Mr Luke C. Roxas continues to be its largest Philippine shareholder with approximately 28% interest in the bank. Other shareholders include prominent businessmen such as Mr George T. Yang of McGeorge Food Industries, the local franchise holder of McDonald’s, Mr Modesto N. Cervantes of Easycall Communications, Mr James O. Lim of Perla Compania de Seguros, Mr Cheng Lay, Jr. of the Gedisco Group of Companies, and Mr Cecilio K. Pedro of Lamoiyan Corporation, the manufacturer of Hapee toothpaste.